St. Paul daily globe., 1887-01-19
THE PACIFIC ROADS.
Secretary Manning Gives His Views
Regarding neI iirg Leais linn

Regarding TeL ding Lesi>iaiiOn.
WASHINGTON. Jan. 1S.-Secretary Man.
ming has written the following reply to the
senate resolution of Jan. 6. calling upon
him for information as to the sums of
money owing to the United States by the
Pacific railroad companies:
Treasury Department, Washington, JAN
Ito the President Of the Senate pro tenn.
Sir: have the honor TO state that the
amount due Il ON the several Pacific ra .lroad
companies for interest on su usidy bonds
issued to said companies is $10,S54, ,325, of
which there had been repaid by the com
panies at that date the sum of $2l, ,552. ia,
leaving due on account of interest The sum
of $40, ,3U2. Isl. There will be due on the
same account at maturity of the subsidy
bonds Sept II, 1897. the further sum of
S43, ,4J6,92l. making total of SS2, 7U9, 103 d lie
and to become due on account of interest
There Is also TO become due on account of the
principal of these bonds at muturity the sum
OF S6+. 623, 5l2, making an aggregate indebted
ness due aud to come due of Sl57, 49,, 615 In
regard TO the inquiry as to what difference
will result to the treasury if the senate bill
No. 1,200 should become a law, it may be
stated that
THE SPECIAL METHOD
prescribed by the bill for obtaining the con-
slant annual payment is one which, while
proposing to fund constant annual pay
and interest OF the Indebtedness of the COM
Panies, is insufficient to cancel even the in
terest. The present worth of the indebted
ness OF the companies on Oct l. 1886, ascer-
tanned as prescribed in the bill, is Sl1U 9IS 100
the seni-annual interest on which, comput-
ing at per cent. per annum. is 81 664, 81,
while the constant semi-annual payment re-
quired to be maze under the provisions Of the
bill is 81, l,525.94S. The constant semi i-annual
payment or bond of Indebtedness re-
quired to cancel the Indebtedness
above mentioned ($110,91S, 100, principal
aud interest in eighty years computed at the
rate of per cent per annum re-invested
semi-annualiy Is 81, ,S34 1858. Section of the
act Of May 8, 1867,
ESTABL1 SIZING A SINKING FUND
for the Union and Central Pacific Railroad
companies, commonly known as the Thur
man act" provides that said sinking fund so
established shall, according TO the interest
and proportion of said companies respect
lively therein, be held for the protection, Sc
curity and benefit of the lawful first holders
of any mortgages or lien debts of such COM
panies respectivel lawfully paramount to the
rights of the United 81. s, and for The claims
of other creditors, If any, lawfully chargeable
upon the funds so required to be paid into
said sinking fund, according to b eir respect
i've priorities. as well as for the United States,
according to the principle of equity, to the
end that all persons having any claim upon
said sinking fund may be entitled thereto in
due order. In view of this provision of the
law it may be properly considered whether the
sinking fund now held in trust by the govern
ment should be treated as au Offset in deter
mining the Indebtedness due the government
from the railway company mentioned as is
required by section one, first paragraph of
senate bill l,200, new under consideration.
DANIEL MANNING.
Secretary of the Treasury.